FTAI Aviation delivered third quarter results that met analyst revenue expectations, but reported a lower-than-anticipated GAAP profit, with management citing ongoing business model shifts and increased investment activity. CEO Joseph Adams highlighted the successful close of a major strategic capital partnership, SCI, which significantly expanded the company’s managed aircraft portfolio. The Aerospace Products segment continued its strong momentum, benefiting from heightened demand for rebuilt engines and newly announced long-term airline contracts. Management emphasized that vertical integration and efficiency improvements across facilities in Montreal, Miami, and Rome were pivotal in driving both productivity and margins this quarter.
Is now the time to buy FTAI? Find out in our full research report (it’s free for active Edge members).
FTAI Aviation (FTAI) Q3 CY2025 Highlights:
- Revenue: $667.1 million vs analyst estimates of $665.5 million (43.2% year-on-year growth, in line)
- Adjusted EPS: $1.16 vs analyst expectations of $1.20 (3.4% miss)
- Adjusted EBITDA: $297.4 million vs analyst estimates of $280.8 million (44.6% margin, 5.9% beat)
- EBITDA guidance for the full year is $1.46 billion at the midpoint, above analyst estimates of $1.20 billion
- Operating Margin: 30.1%, down from 32% in the same quarter last year
- Market Capitalization: $17.73 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From FTAI Aviation’s Q3 Earnings Call
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Sheila Kahyaoglu (Jefferies) asked about the financial implications of SCI upsizing on segment EBITDA and free cash flow. CFO Angela Nam explained SCI growth will increase committed volume, improve production efficiency, and support faster market share gains in MRE.
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Kristine Liwag (Morgan Stanley) questioned asset availability and pricing for SCI aircraft, as well as investor reception. CEO Joseph Adams emphasized strong supply from lessors and airlines, explaining SCI’s engine exchange model reduces downtime and capital needs for airline partners while providing predictable, asset-backed returns to investors.
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Joshua Sullivan (JonesTrading) inquired about the scalability of small module capacity investments like ATOPS. Adams said such investments are plentiful and low-cost, with the main limiting factor being access to skilled mechanics, which FTAI is addressing through its Montreal training academy.
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Brian Mckenna (Citizens) probed the long-term shift to an asset management business model and the impact on earnings streams. Adams confirmed FTAI’s ambition to become both a manufacturing and asset management business, with growing fee-based revenues from SCI partnerships.
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Hillary Cacanando (Deutsche Bank) asked about the drivers of 2026 guidance, specifically the contributions from new and existing customers and recent acquisitions. Adams highlighted a projected 33% production increase, larger repeat orders from current customers, and margin gains from vertical integration.
Catalysts in Upcoming Quarters
Over the coming quarters, the StockStory team will focus on (1) the pace of new SCI partnerships and their capital deployment, (2) the ramp-up of module production at newly acquired and expanded facilities, and (3) the scale of recurring revenues from long-term airline contracts. Execution on vertical integration and the realization of cost efficiencies from joint ventures and acquisitions will also be critical signposts for sustained margin expansion and cash flow growth.
FTAI Aviation currently trades at $174.95, down from $185.29 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free for active Edge members).
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